blurring the lines with augmented reality

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1 www.zugara.com Blurring The Lines With Augmented Reality

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This was a presentation on Augmented Reality I gave at IHAF (In House Agency Forum) in Boston on October 7, 2010. The presentation covers basics of Augmented Reality, Best Practices, Examples That Work and Demos.

TRANSCRIPT

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Blurring The Lines WithAugmented Reality

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Snapshot: Zugara develops Augmented Reality software and robust applications that advance the way in which people are able to interact with real time digital data.

Founded: 2001

Location: Los Angeles

Web: www.zugara.com

Blog: www.weareorganizedchaos.com

Facebook: www.facebook.com/augmentedreality

YouTube: www.youtube.com/zugara

Twitter: www.twitter.com/zugara

Hello! We’re Zugara

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Retail / Fashion

ReebokNikePINGChili’sKFCJohn Deere

Automotive

ToyotaLexusAmerican RacingVolkswagenFletcher Jones Mercedes BenzFletcher Jones Porsche

Travel

Norwegian Cruise LineSouthwest Airlines

Entertainment

Sony Pictures TelevisionPlayboyComcast

GamingActivision BlizzardSony PlayStation (SCEA)Square Enix989 SportsGlu MobileTecmo GamesXseed GamesTHQDisney Interactive Games

ToysHasbro

CPG

Red BullSlim JimPeanut Chews

Consumer Electronics

Sony ConnectActive Media (ITV)

Non-Profit / Government

U.S. Air ForceLegacy FoundationHopeLab

Strategy

Domino’s PizzaBest BuyWalmart

Healthcare

Blue Cross

B2B

SchlumbergerTV GuideESPNAT&TMohawk Flooring

Agencies

GSD&MCrispin Porter & BoguskyAd*itiveThe Martin AgencyRodgers/TownsendWeiden KennedyVitro-RobertsonHal Riney

We’ve Worked With a Number of Brands

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Current Brands Using Our AR Solutions

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How many of you know what

Augmented Reality

is?

Show of Hands…

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My Reaction to AR for the first time…

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…when the real world is

“augmented” by computer

data.

Augmented Reality is…

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…the future of how we will interact with digital information.

VIEW INTERACT

ACCESS

Augmented Reality is…

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…Virtual Reality or

Second Life…

Augmented Reality is Not…

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Usually shown as reality in popular movies today…

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AR looks cool, but is anybody actually using it?

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Emerging Hype Cycle- Explained

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2008- Emerging Technology Hype

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2009- Emerging Technology Hype

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2010- Emerging Technology Hype

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Emerging Technology Benefit

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Brands Using AR

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70% of Dabs.com visitors engaged with their AR experience. Of that group 13% then purchased

(utalkmarketing.com, 2010)

Since the launch of Hotels.com Virtual Vacation micro-site using AR, bookings soared by 36% (Hotels.com, 2010)

Swiss watchmaker Tissot saw in-store sales of its watches rise by 85% (utalkmarketing.com, 2010)

Where’s The ROI?

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Major advertising and marketing channels have started using AR.

AR + Integrated Channels

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Online has exploded with branded engagements.

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Muscle Milk AR Packaging

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Online, all the consumer needs:

Modern Computer

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Online, all the consumer needs:

Modern Computer Regular Web Cam

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Often times a marker (or glyph):

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And sometimes just an image:

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And now with just a face.

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Some AR executions require:

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This is a barrier for the consumer.

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So beyond all the hype, what’s practical for AR in the here and now?

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• Largest Reach /

Average Spec

• Adoption of Video Chat& Webcam Fueling Growth

• Flash-based AR

Online AR- Currently Most Popular

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• Least amount of barriers

• Limited scale/reach

• Highest tech

Kiosk-Based AR- Growing

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Interactive Installation / Event Marketing AR

• Least Amount of Barriers

• Interactive Draw-In

• Varying Levels Of Cost Implementations

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• Highest tech possibilities (i.e. Kiosk)

• High cost of implementation

• Public / group reach

Interactive Billboards- OOH AR

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• Not yet ready for primetime • Limited processing power

• Will be focal point of AR inthe future

Mobile AR

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Mobile- Addison Avenue FCU’s ATM Finder

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But, is AR always the best way to

connect with your

consumer?

Don’t Put Technology First

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Would you hold a print magazine up

to a webcam to watch a 5 minute

video?

Put On Your “Consumer Hat”

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Are you trying to add value for the consumer or for you?

Utility is key…

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Here’s a few examples that work…

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Online- The USPS

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Online- The USPS

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POP- Lego’s Kiosks

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POP- Lego’s Kiosks

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Mobile- iButterfly

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Mobile- iButterfly

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Mobile- BMW’s AR Service Glasses (Concept Video)

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Mobile- BMW’s AR Service Glasses (Concept Video)

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Tradeshow- GE- Visible You Body Scan

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Tradeshow- GE- Visible You Body Scan

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OOH- Netherlands PSA- AR Billboard

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OOH- Netherlands PSA- AR Billboard

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Now for the fun stuff…AR demos

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ZugMoMotion Capture Gaming

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Both Sony and Microsoft will be launching motion based gaming systems this year, entering a marketplace that is currently dominated by the Ninendo Wii.

People’s awareness and comfort level with this type of interface will subsequently skyrocket as we can expect robust advertising dollars to be put behind all of the gaming systems.

Evolution of the NUI

Microsoft “Kinect”

Sony “Move”

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Demo

Cannonballz!

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Video

Nesquik- Factory Game

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Video

Nesquik- Factory Game

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The Webcam Social ShopperAugmented Reality Shopping

A Proprietary Application

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Shopping offline is a social and emotionally rewarding experience for Madison.

THE RESULT: -- Conversion Rates Are Low -- Return Rates Are High

The Problem

Online is a different story. Her experience is utilitarian. It’s solitary, and has remained largely unchanged since the mid 90s.

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Demo

Webcam Social Shopper

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Video

Fashionista

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Video

Fashionista

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Demo

Webcam Social Shopper- 2.0

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ZugMug Prototype

Video

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ZugSTARAugmented Reality Video Conferencing

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Communication Technology Has Been Rapidly Evolving Over The Years…

History of Communication

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Smoke Signals

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Carrier Pigeon

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Telegraph

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Telephone

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But Then Something Happened Which Changed Everything…

History of Communication

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The First Computer

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Which Helped Lead The Way To Increasingly Faster Communication Advancements…

History of Communication

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Text Chat

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Mobile Phone

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Social Media / Real Time Data

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Proliferation Of Real-Time Data Has Led Us To The Beginning Of The Video Chat Revolution…

History of Communication

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iPhone FaceTime

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Skype

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• Markets for webcams at $1.8 billion in 2008 are anticipated to reach $3.2 billion by 2015.

• As of March 2009, 40% of video uploads on Facebook were via webcam.

• Gartner predicts that 200 million people will

pay for desktop videoconferencing by 2015.

Video Chat Stats

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But What’s Missing?

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Limited to conversation

Little to no real-time interaction or

collaboration

Video Conferencing & Chat Today

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Video Conferencing + Augmented Reality =

Ability to share and interact with content

in real time

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*Patent Pending

ZugSTAR*

Demo

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*Patent Pending

ZugSTAR*

Video

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The Future of AR

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True Markerless Via An Average Webcam

More Immersive Experience Online / Kiosk

Advancements In Body Recognition

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Advancements in Facial Recognition

Fantasy: Personalized Ads For Tom Cruise

Reality: Personalized Ads In Japan Based On Gender / Age

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Current Limitations:• Hardware Issues

• GPS & Compass Accuracy

• Processing Power Issues• Usability

To Become:• Central touchpoint for AR

Mobile Will Overcome

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Virtual Ownership…

Who owns ‘virtual’ space in the real world?

Augmented Reality “Rights”

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U.S. shipments of web-enabled consumer electronic (CE) devices that support TV applications will grow from 14.6 million in 2010 to 83.4 million by 2014. By 2014, over 59 million U.S. broadband households willown at least one CE device that supports TV applications. By 2014, the U.S. installed base of CE devices that support TV applications will be 136 million units. (IN-STAT)

Connected TVs Will Be a Powerful Medium

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“The best way to predict the future is to invent it.”

- Alan Kay

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Thank You!Matthew Szymczyk

CEO, [email protected]

Twitter.com/kobrakaiFacebook.com/AugmentedReality

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Appendix

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ZugMO is a computer interface that allows people to interact with their computer via their web cam rather than their keyboard or mouse.

With ZugMO a person’s movements, or motions, are captured by their web cam. This allows the person to interact with their system while several feet away.

ZugMO (Zugara Motion Capture)

Proprietary Technology #1

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With ZugSTAR, Augmented Reality becomes a technology that facilitates collaboration. People no longer need to be in the same room to manipulate and discuss 3D models, as physical distance becomes less of a barrier.

ZugSTAR is a web based video conferencing technology that allows people in different locations to have shared AR experiences. Like other video conferencing systems ZugSTAR allows for two-way video transmissions, but with the added functionality of allowing people to interact with one another's “augmented” experience in real time.

DID YOU KNOW? Gartner IT predicts that by 2015 over 200 million people will be paying for video conferencing.

ZugSTAR (Zugara STreaming AR)

Proprietary Technology #2

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ZugMUG is a piece of facial tracking software that allows the webcam to determine where a person’s face is within the video stream.

With ZugMUG a person’s face can become the “marker”, subsequently allowing for Augmented Reality executions where people no longer need to hold a piece of paper up to the webcam.

ZugMUG (Zugara Facial Tracking)

Proprietary Technology #3

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Augmented Reality

Statistics

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Handheld platforms will transform the Augmented Reality ecosystem, with revenue associated with Augmented Reality growing from about $6 million in 2008 to more than $350 million in 2014.

(ABI Research study “Augmented Reality: Adding Information to Our View of the World”)

Augmented Reality Revenue

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Markets for webcams at $1.8 billion in 2008 are anticipated to reach $3.2 billion by 2015, growing in response to decreases in unit costs and increases.

(Wintergreen Research - Worldwide WebCam Market Shares, Strategies, and Forecasts, 2009-2015)

Worldwide Webcam Growth Rate

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As of last March 2009, 40% of Facebook Video Uploads were via Webcam (Businessweek – Facebook Grows As A Video Platform)

Webcam Video Uploads on Facebook

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Case Study (over a one year period)

Unique Visitors22,926

% Of Unique Visitors That Logged Into

Facebook14%

Average Time Spent On Site4 min 44 sec

% Of Unique Visitors That Had Webcams*

78%

% Of Unique Repeat Visitors27%

*Note: this number is in line with what Best Buy saw (78%) when they integrated an AR execution into a Sunday circular

Cannonballz! Game Stats

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Would you view an online Augmented Reality experience if it required you to download and install an Internet Browser plug-in other than Flash? (256 Votes)

AR Polls: Browser Plug-In

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Do you have a webcam on any of your computers, or do you plan to have one within 6 months? (307 Votes)

AR Polls: Do You Have a Webcam?